Hobart, Tasmania

If it’s festivals, markets, or the buzz of the waterfront that appeals to you, you want to stay in the Salamanca district. Considering its prime location, hotels are numerous, but you will find yourself paying a little bit more for the privilege. The most exciting hotel to open in Hobart in recent years is MACq 01 (doubles from AU$280; 18 Hunter St., map). Positioned smack-bang on the water, it presents itself as a “storytelling” hotel, where every room is inspired by a historical Tasmanian character. Through sight, sound, and touch the story is revealed, providing insight into the Tasmanian spirit.

If you’re staying awhile, a serviced apartment is a fantastic option. The award-winning Salamanca Wharf Hotel (doubles from $205; 17a Castray Esplanade, map) cannot be missed; just look for the towering silos by the water’s edge. These old agricultural icons have been gutted, renovated, and transformed into boutique accommodation in the heart of Salamanca, just a short walk from the restaurants, markets, and entertainment hot spots of Hobart.

More of a budget traveler? The Alabama Hotel (doubles from $80; 72 Liverpool St., map) makes a good home away from home. A little bit quirky, and as comfortable as a favorite pair of jeans, it has an awesome little lounge bar overlooking Liverpool Street. Its approach is equal parts ethical and environmentally sensitive, giving you that warm fuzzy feeling knowing that you’re helping to minimize your travel footprint. Yes, you do need to share bathroom facilities, but that just adds to the charm of this hidden oddity in Hobart’s CBD...right?